GURUFOCUS.COM » STOCK LIST » USA » NAS » Lululemon Athletica Inc (NAS:LULU) » Definitions » Owner Earnings per Share (TTM)
Switch to:

Lululemon Athletica Owner Earnings per Share (TTM)

: 5.07 (As of Apr. 2022)
View and export this data going back to 2007. Start your Free Trial

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

Lululemon Athletica's Owner Earnings per Share (TTM) ended in Apr. 2022 was $5.07. It's Price-to-Owner-Earnings ratio for today is 65.58.


The historical rank and industry rank for Lululemon Athletica's Owner Earnings per Share (TTM) or its related term are showing as below:

LULU' s Price-to-Owner-Earnings Range Over the Past 10 Years
Min: 19.23   Med: 47.9   Max: 117.12
Current: 65.74


During the past 13 years, the highest Price-to-Owner-Earnings ratio of Lululemon Athletica was 117.12. The lowest was 19.23. And the median was 47.90.


LULU's Price-to-Owner-Earnings is ranked worse than
89.61% of 491 companies
in the Retail - Cyclical industry
Industry Median: 12.21 vs LULU: 65.74

Lululemon Athletica's Earnings per Share (Diluted) for the three months ended in Apr. 2022 was $1.48. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Apr. 2022 was $7.87. It's PE Ratio ratio for today is 42.25.

Lululemon Athletica's EPS without NRI for the three months ended in Apr. 2022 was $1.48. Its EPS without NRI for the trailing twelve months (TTM) ended in Apr. 2022 was $7.87. It's PE Ratio without NRI ratio for today is 42.25.


Lululemon Athletica Owner Earnings per Share (TTM) Historical Data

The historical data trend for Lululemon Athletica's Owner Earnings per Share (TTM) can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Lululemon Athletica Annual Data
Trend Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Owner Earnings per Share (TTM)
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.54 4.36 3.37 4.09 8.49

Lululemon Athletica Quarterly Data
Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22
Owner Earnings per Share (TTM) Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.32 6.94 7.93 8.49 5.07

Competitive Comparison

For the Apparel Retail subindustry, Lululemon Athletica's Owner Earnings per Share (TTM), along with its competitors' market caps and Owner Earnings per Share (TTM) data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Lululemon Athletica Owner Earnings per Share (TTM) Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Lululemon Athletica's Owner Earnings per Share (TTM) distribution charts can be found below:

* The bar in red indicates where Lululemon Athletica's Owner Earnings per Share (TTM) falls into.



Lululemon Athletica Owner Earnings per Share (TTM) Calculation

In 1986 Berkshire Hathaway Shareholder Letter, Warren Buffett defined owner earnings as follows:

"These represent (a) reported earnings plus (b) depreciation, depletion, amortization, and certain other non-cash charges...less (c) the average annual amount of capitalized expenditures for plant and equipment, etc. that the business requires to fully maintain its long-term competitive position and its unit volume. (If the business requires additional working capital to maintain its competitive position and unit volume, the increment also should be included in (c))...Our owner-earnings equation does not yield the deceptively precise figures provided by GAAP, since (c) must be a guess - and one sometimes very difficult to make. Despite this problem, we consider the owner earnings figure, not the GAAP figure, to be the relevant item for valuation purposes - both for investors in buying stocks and for managers in buying entire businesses...All of this points up the absurdity of the 'cash flow' numbers that are often set forth in Wall Street reports. These numbers routinely include (a) plus (b) - but do not subtract (c)."

To make it simple, then you will have:

Owner Earnings per Share (TTM) = (Net Income + Depreciation, Depletion and Amortization + Change In Deferred Tax - 5Y Average of Maintenance Capital Expenditure + Change In Working Capital) / Shares Outstanding (Diluted Average)

Lululemon Athletica's Owner Earnings per Share (TTM) Calculation:

TTM / Last Quarter Average of Last 20 Quarters
Net Income 1,020
Depreciation, Depletion and Amortization 238
Change In Deferred Tax 0
5Y Average of Maintenance Capital Expenditure 248
Change In Working Capital -359
Shares Outstanding (Diluted Average) 129

1. Start with "Net Income" from income statement. Lululemon Athletica's Net Income for the trailing twelve months (TTM) ended in Apr. 2022 was $1,020 Mil.

2. "Depreciation, Depletion and Amortization" is from cashflow statement. Lululemon Athletica's Depreciation, Depletion and Amortization for the trailing twelve months (TTM) ended in Apr. 2022 was $238 Mil. This needs to be added back because company does not actually need to pay cash for it. It is a non-cash item.

3. Other non-cash charges usually include "Stock Based Compensation" and "Change In Deferred Tax":
However, to be conservative, GuruFocus will not add Stock Based Compensation back to net income. Lululemon Athletica's Change In Deferred Tax for the trailing twelve months (TTM) ended in Apr. 2022 was $0 Mil.

4. Average maintenance capital expenditure over a business/industry cycle: 5-Year Average Maintenance Capital Expenditure = $248 Mil

It is usually best to take a long-term average of maintenance capital expenditure. Ideally this would be as long as 10 years and include at least one economic downturn. However, since many companies do not have as long as 10-year history, here GuruFocus uses the latest 5 years data to do the calculation. To smooth out unusual years but reflect recent developments, we take an average of the 5 year maintenance capital expenditure.

The following shows how to get maintenance capital expenditure.

First, calculate the revenue change regarding to the previous year. If the revenue decreased from the previous year, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
Second, if the revenue increased from the previous year, then calculate the percentage of Net PPE as of corresponding Revenue.
Growth Capital Expenditure = Percentage of Property, Plant and Equipment as of corresponding Revenue * Revenue Increase
Third, calculate Capital Expenditure (positive) - Growth Capital Expenditure.
If [Capital Expenditure (positive) - Growth Capital Expenditure] was negative, then the Maintenance Capital Expenditure = Capital Expenditure (positive).
If [Capital Expenditure (positive) - Growth Capital Expenditure] was positive, then the Maintenance Capital Expenditure = Capital Expenditure (positive) - Growth Capital Expenditure.
Fourth, get the average of the 5 years maintenance capital expenditure.

Lululemon Athletica's 5-Year Average Maintenance Capital Expenditure = $248 Mil

5. "Change In Working Capital" is from cashflow statement. Lululemon Athletica's Change In Working Capital for the trailing twelve months (TTM) ended in Apr. 2022 was $-359 Mil.
Note: GuruFocus' Change in Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And sometimes it includes non-current parts of assets and liabilities.

6. Lululemon Athletica's Shares Outstanding (Diluted Average) for the months ended in Apr. 2022 was 128.541 Mil.

Lululemon Athletica's Onwer Earnings Per Share for Apr. 2022 is calculated as:

Owner Earnings per Share (TTM)
=( Net Income+Depreciation, Depletion and Amortization+Change In Deferred Tax
=( 1020.364 +238.191+0
-5Y Avg of Maintenance CAPEX+Change In Working Capital )/Shares Outstanding (Diluted Average)
-247.67238567908+-358.794)/128.541
=5.07

Price-to-Owner-Earnings=Current Price/Owner Earnings per Share (TTM)
=332.50/5.07
=65.58

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Assumption: Companies usually do not report maintenance capital expenditures and growth capital expenditures separately. Here we use estimated numbers and average them over 5 years. The method to estimate maintenance capital expenditures can be found in above part 4.

Note: GuruFocus' Change In Working Capital is provided by Morningstar. It is calculated by adding the items under "Change in operating assets and liabilities" (may refer to a different name for different company) section in Cash Flow Statement from original financial report. And it includes non-current parts of assets and liabilities.


Lululemon Athletica Owner Earnings per Share (TTM) Related Terms

Thank you for viewing the detailed overview of Lululemon Athletica's Owner Earnings per Share (TTM) provided by GuruFocus.com. Please click on the following links to see related term pages.


Lululemon Athletica Business Description

Lululemon Athletica logo
Address
1818 Cornwall Avenue, Vancouver, BC, CAN, V6J 1C7
Lululemon Athletica Inc. designs, distributes, and markets athletic apparel and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 550 company-owned stores in 17 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
Executives
Neuburger Nicole officer: Chief Brand Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Loehnis Alison director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J1C7
Maestrini Andre officer: EVP, International C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Choe Michelle Sun officer: Chief Product Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVE VANCOUVER A1 V6J 1C7
Burgoyne Celeste officer: Pres Americas&Global Guest C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVE VANCOUVER A1 V6J 1C7
Frank Meghan officer: Chief Financial Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Gibson Kourtney director C/O MARKETAXESS HOLDINGS INC. 55 HUDSON YARDS, 15TH FLOOR NEW YORK NY 10001
White Emily director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Ferris Stephanie director C/O VANTIV, INC. 8500 GOVERNORS HILL DRIVE CINCINNATI OH 45249
Murphy Glenn director C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J1C7
Mcneill Jon director 45500 FREMONT BLVD FREMONT CA 94538
Casey Martin Michael director
Morfitt Martha A M director P.O. BOX 1441 MINNEAPOLIS MN 55440-1441
Henry Kathryn director C/O LULULEMON ATHLETICA, INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Mcdonald Calvin director, officer: Chief Executive Officer C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7

Lululemon Athletica Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)